He said the passengers were assembled on the tarmac and police then arrested a man wearing a red jacket and red hat.

"The man didn't seem to resist the arrest."

Police asked the passengers if anyone had any issues with the man and spoke to the people who had been seated near him.

The arrested passenger was said to be calm throughout the flight and got up and went to the bathroom once.

Michelle McNamara, who works for a car hire company in the airport terminal, said plainclothes police, uniformed officers, firefighters and ambulance crews closed off half the terminal during the operation.

"It's normally quiet, it's Albury Airport," she told AAP.

"It's a bit concerning. With all that's happening in the world, it makes you think the worst."